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The Value of Customer Experience, Quantified

Intuitively, we all understand the value of delivering a great customer experience. But how much is that worth in hard and fast dollar terms?

Working with Medallia clients, and by studying the behavior of individual customers and controlling for all other variables, we looked at what happened to customers after they had an experience — how much did they go on to spend over the next year? How long were they likely to remain a customer?

The results were surprising.

Originally published in the Harvard Business Review, we’re excited to share it with you here.